ECB chief Lagarde to step down early, triggering succession race

- 'I don't think I can remain neutral' - Lagarde, who served in the governments of France's centre-right presidents Jacques Chirac and Nicolas Sarkozy, has also hinted that she could get involved in campaigning for the presidential vote, saying it was important to have a "European voice" in debates. Speaking at the end of a regular ECB monetary policy press conference Thursday, Lagarde said she was quitting so that she could intervene in politics. "I want to have the freedom of speech, the freedom of expression and the freedom to engage on matters that are not monetary policy matters," she said. "I don't think that I can remain neutral. I don't think that I can be comfortable in that neutrality at the present time.

" Her tenure was marked by repeated geopolitical upheavals that often left policymakers struggling to fulfil the ECB's main task of keeping consumer prices in check. The Covid-19 pandemic, Russia's invasion of Ukraine and subsequent energy shock -- which pushed eurozone inflation to a record of over 10 percent -- the US tariff blitz and now the fallout from the Iran war all severely tested the institution. The ECB's governing council, which sets interest rates for the 21-member single currency area, faced criticism, in particular during the 2022 inflation surge, for responding too slowly. But officials also won praise for seeking to overhaul the central bank so it is better prepared for a more uncertain world, introducing new crisis-fighting tools and seeking to communicate its decisions more clearly. - Succession race - Antonio Costa, head of the European Council, said the process to appoint Lagarde's successor would begin immediately to ensure a "smooth transition". The frontrunners to…